We recently published an industry update newsletter that spoke to the effect of the Chinese Lunar New Year on the global supply chain. Whilst the global supply chain operates year-round, it is heavily influenced by local traditions, religious holidays, and cultural observances.
These events can lead to delays, congestion at ports, and fluctuations in shipping costs. Understanding how major holidays impact global shipping helps businesses prepare and mitigate risks associated with seasonal disruptions.
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For now, we’ll use this article to explore some of the key holidays across the world that significantly impact logistics and transportation.
1. Chinese Lunar New Year (China and East Asia)
One of the most well-known disruptions to global trade, the Chinese Lunar New Year (CNY), affects manufacturing and shipping not just in China but across East Asia. The holiday typically lasts 15 days, but factory shutdowns can extend for weeks before and after.
Naturally this has an impact on shipping, as production halts, backlogs at ports are encountered, and freight rates are increased as companies rush to ship goods before the holiday.
Keep tabs on this holiday, and be sure to place orders well in advance, as well as anticipate delays in inventory replenishment.
2. Golden Week (Japan and China)
Golden Week marks a time where Asian countries (namely Japan and China) have a series of holidays within one week. Many people and businesses shut-down during this period, taking advantage of the multiple ‘Citizen’s Holidays’ in this period.
Golden itself differs in time between China and Japan.
- Japan: Golden Week, occurs in late April to early May, combining several national holidays.
- China: China’s Golden Week, takes place in early October, causing a surge in domestic travel, impacting trucking and internal logistics.
The core result of Golden Week is a reduced workforce which leads to port congestion and delayed shipments.
3. Ramadan and Eid al-Fitr (Middle East and Islamic Nations)
During the holy month of Ramadan, working hours are reduced in many Muslim-majority countries. This culminates in Eid al-Fitr, a major festival that can result in week-long closures.
The impact to shipping here is slower processing times at customs, reduced labour availability, and fluctuating demand for perishable goods.
Adjusting shipment schedules to avoid peak holiday periods can help you avoid the backlash on your business. Another consideration is to work with local partners to ensure better logistical support.
4. Diwali (India)
Diwali is the Hindu festival of lights, and it is one of India’s most significant holidays. This often results in week-long business closures which inadvertently creates factory slowdowns, increased e-commerce demand within India, and port congestion.
To prepare for this holiday period, be sure to place orders ahead of time and anticipate price increases for air and sea freight.
5. Christmas and New Year (Western Countries and Global Impact)
As a South African based business we are well aware of the impact that Christmas and New Year celebrations can have on businesses as a whole, let alone shipping. South African business tends to take a hiatus during the period from 16 December – 6 January, where many people take advantage of the long school holidays and public holidays included.
Asides from the impact of business closure, there is also an increased demand on retail – with Christmas typically being a time of gift giving between family and friends.
What to expect during this time? Delays in customs clearance, increased freight rates due to peak season demand, and bottlenecks at major ports. Be sure to secure shipping slots early and consider alternative routes or air freight options.
6. Thanksgiving and Black Friday (United States)
Although primarily a U.S. holiday, Thanksgiving and the shopping event Black Friday have a global impact on e-commerce and retail logistics. Black Friday has over the last 5 – 8 years become more of a global (Western) phenomenon, with South Africa also experiencing surges in Black Friday deals.
High demand for consumer goods during this time results in overwhelmed fulfillment centers and delayed deliveries. For this reason it is important to place orders early, and expect delivery later than usual or over a longer time frame. Businesses should stock inventory early and use predictive analytics to manage demand fluctuations.
7. Semana Santa (Latin America and Spain)
During Semana Santa (Holy Week), many businesses across Latin America and Spain shut down, affecting exports and imports.
Slower port operations and limited workforce availability are typical results of this Holy Week and businesses should prepare as such. Adjusting lead times and planning shipments around the holiday period is a wise idea if you are working with business in the Latin America or Spanish region.
8. Chuseok (South Korea)
Chuseok, Korea’s mid-autumn harvest festival typically takes place over a 3 day period, leading to factory shutdowns and a surge in domestic shipping.
Some impacts on shipping that you can expect include reduced shipping capacity and slower processing times. Hence planning ahead and booking shipments early will ensure you avoid bottlenecks.
Understanding the impact of global holidays on logistics can help you and your business proactively manage supply chain disruptions. By planning ahead, diversifying shipping routes, and working closely with freight forwarders, such as ourselves at Inter-Sped, you can minimise delays and optimise your shipping strategy.
We’re here to help you have foresight and make the necessary strategic adjustments to navigate these seasonal fluctuations smoothly and maintain a resilient global supply chain.
